Interdepartmental Networks

Interdepartmental networks have been defined as the system of organizational actors working together within departments and interconnected through formal and informal relations. The term is frequently found in literature associated with matrix and project organizations and refers to a cross-functional structure bringing members together from separate functional areas to take on tasks on a temporary basis or on a relatively permanent basis.

The organizational science literature often relates matrix and project-based structures with interdepartmental networks, described as a channel through which good ideas flow and an information-processing problem is solved through the creation of lateral communication channels. Cross-functional structures are described in the management literature as a governance model able to build a flexible organization, promote individual and team entrepreneurship, and allow quick decision making based on a multidisciplinary approach to problem solving. The network perspective on innovation is associated with a horizontal management style that emphasizes participation and open communication rather than formal directives and a command-and-control style. Since the 1960s, studies have demonstrated the innovative potential of a style that emphasizes the flow of information not only upward but also downward and outward from the center.

Interdepartmental networks often can take the form of project teams, communities of practice, or task forces. Despite differences in terms of goals or volunteer participation, the common characteristic of these social networks is the facilitation of knowledge sharing between individuals conducting practice-related tasks. Each member brings his or her special knowledge, capabilities, and interpersonal relationships with the rest of the organization as well as with external actors.

[Page 422]Promoting the creation of interdepartmental networks has several benefits, widely described in different research streams: team research, innovation management, organizational behavior, and social network analysis. The different streams of literature have evolved independently, with the exception of some studies conducted in the 1950s, when network theories were used to study team dynamics. There is still a lack of systematization in the literature on the nature, structure, and evolution of interdepartmental networks because these disciplines have evolved quite independently from each other.

Network theory allows researchers to adopt multiple levels of analysis to study cross-functional phenomena. A first level of analysis describes the organization as an interdepartmental system and looks at the position and reciprocal influence of departments within the whole organization. A second level considers the organization as an interindividual system and searches for individuals' positions within and across departments. According to the first approach, the study of cross-functional relations can be more stable and less dependent on the idiosyncrasies of individuals, which might affect the reliability of the observation because of the influence of informal ties among individuals.